Strategic advice Special Week 2

PRODUCT C

STRATEGIC ADVICE SPECIAL WEEK 2

Test code: 25YGSW411A Melle Janssen: 2565285 Babette Zimmerman: 2457512 Noor van Rooij: 2572397 Nina Keijzers: 2213921 Isabelle Cijsouw: 2571064 Isa van Meersbergen: 2453983

MEET MAGNIFY

MAGNIFY is a team of six creative investigators, each studying at the Fontys Academy for Creative Industries. We focus on a field of business that changes tremendously all the time. As a team, MAGNIFY courageously seeks to identify new, hidden and surprising ways to form a succesful strategy or concept for clients. We believe that the concepts and strategies we create for our clients are nothing without focusing on every detail. We believe that greatness does not lie in impressive ideas, but the details that altogether form these ideas. Succes is the result of unique details that strengthen each other.

Our core values are: CURIOUSITY

ATTENTION

POSITIVITY

COURAGE

Melle Janssen | Researcher 2565285 – CE IEMES +31 6 111 40 702 / melle_janssen1@hotmail.com Greetings, my name is Melle Janssen. I consistently have a different approach, regularly being more realistic and factual approach to problems and questionnaire which usually results into me being a valuable asset in problem-solving.

Babette Zimmerman | Final text editor 2457512 – CE IEMES +31 6 542 55 388 / babettezimmerman@hotmail.com My name is Babette and I am a social butterfly who is always willing to help others. The role as final editor fits me because I like to be the last person to check everything.

Noor van Rooij | Researcher 2572397 – CO IEMES +31 6 535 37 053 / noor.vanrooij@student.fontys.nl My name is Noor and I am interested in the stories behind everything I see. This curiosity makes me the perfect researcher!

Nina Keijzers | Note Taker 2213921 – CO IEMES +31 6 547 87 566 / nina.keijzers@student.fontys.nl Hi there, my name is Nina. I will apply my analyzing and writing skills as the note taker of this project group.

Isabelle Cijsouw | Final design editor 2571064 – CO IEMES +31 6 121 08 446 / isabellecijsouw@hotmail.com Hello, my name is Isabelle. As a final editor, I will make sure that the final product reflects the attention that has been put into creating our advice and concept for the client.

Isa van Meersbergen | Group leader 2453983 – CO IEMES +31 6 409 69 763 / isavanmeersbergen@hotmail.com My name is Isa and I am always focused on the planning and tasks need to be done. My role as the group leader fits me really well, as I like to have an overview of the process at all times.

PREFACE

In front of you is the final strategic advisory report that was made on behalf of Special Week 2, which is organized by the Fontys Academy for Creative Industries. This report is the final part (part C) of the entire assignment that had to be completed for Special Week 2.

We (Melle, Babette, Noor, Nina, Isabelle and Isa) formed a temporary agency called MAGNIFY in which we worked together to complete this assignment for our external client, Jack Morton and Desperados.

During the process of Special Week 2, we were guided and reviewed by our assessor, Oulfa Essaidi. We would like to thank her and all teachers and staff of the Fontys Academy for Creative Industries that have helped us, guided us or answered any upcoming questions during the process. As a team we are very proud of the delivered result and we wish you much reading pleasure.

MAGNIFY Tilburg, December 7th 2017

EXECUTIVE SUMMARY

This advisory report is written by MAGNIFY and is commissioned by Jack Morton for the tequila-flavoured beer brand Desperados. They are looking for a new immersive social experience to connect 18-24 year olds with the brand. In this report a concept is presented for a social influencer campaign. This campaign will be broadcasted on YouTube and viewers will be able to participate through various social media.

Important things to consider for this assignment were that it had to create an emotional connection between Desperados and their target audience. It has to be more about doing instead of telling and more about the social experience than individual.

In the beginning of this report you will find an elaborate research on the brand, the target audience and relevant trends. At the end of this chapter a confrontation matrix is presented in which the outcomes of the analysis are shown. All our research results in a concept that you can find in the advice chapter. The concept is explained and substantiated with visuals and financial support. In the conclusion the advantages for Desperados are explained and the final touch is a note of recommendation. Should Desperados choose to examine this strategic option further, these are the next steps we would recommend.

We hope this strategic advisory report is clear and that you will find it satisfactory. MAGNIFY is looking forward to hearing your feedback and if necessary to answer any questions.

TABLE OF CONTENTS 1, INTRODUCTION.....................................................................................................6 1.1 Introduction of the client.....................................................................6 1.2 Goal and setup....................................................................................................6 2. OUTCOME OF ANALYSES.......................................................................7 3. RESEARCH...................................................................................................................8 3.1 Target audience.................................................................................................8 3.1.1 Three Dimensions of Abell..........................................................................8

3.1.2 Target group analysis...................................................................................10

3.2 Trends............................................................................................................................11 3.3 SWOT............................................................................................................................13

3.3.1 Strengths of Desperados...........................................................................13 3.3.2 Weaknesses of Desperados......................................................................13 3.3.4 Threats for Desperados...............................................................................14 3.3.5 Confrontation Matrix....................................................................................14 3.3.6 Outcome of Confrontation Matrix.......................................................15

4. STRATEGIC ADVICE ...................................................................................16 4.1 Concept.......................................................................................................................16

4.1.1 Planning................................................................................................................18 4.1.2 Visuals....................................................................................................................18 4.1.3 Financial...............................................................................................................19

5. CONCLUSION..........................................................................................................20 BIBLIOGRAPHY..........................................................................................................21 ATTACHMENTS...........................................................................................................25 Output of brainstorms......................................................................................25 Handout................................................................................................................................26

1. INTRODUCTION

This chapter is the introduction of the advisory report. The client and assignment will shortly berevised. It is a retrospect of all the outcomes of the project plan and individual analyses and the goal and setup are explained.

1.1 Introduction of the client

Desperados is a tequila-flavoured beer brand owned by Heineken, the leading developer and marketer of premium beer and cider brands (Van Waveren, 2015). In association with Jack Morton Worldwide, Desperados has the vision to become the iconic beer brand for 18-24-yearold partygo’ers. They want to create unforgettable experiences for their customers. In the past Desperados has created multiple different events to accomplish this. In 2014, Jack Morton created the ‘Party better, party different’ campaign. Besides the social media campaign, three parties were thrown in three different cities with limited access. The people that got to go to these events were challenged to explore and unlock new experiences at the party (Jack Morton, 2014). Desperados’ latest event was Skyfest, on September 16th in Barcelona. This was a music festival in the sky with different DJ’s playing from hot air balloons (Fonk, 2017). However, just like their consumers, Desperados is always looking for new experiences to explore and experiment and that is why they want new ideas for such experiences.

The assignment Desperados is looking for a new immersive experience to connect the brand with their target audience. With the vision and values of Jack Morton in mind, a concept will be created that will speak to the young adults (18-24-year-olds) Desperados wants to reach. Important key points for this concept are that it has digital elements and that the focus lies on the social aspect rather than the individual aspect.

1.2 Goal and setup

In this strategic advice report, an advice will be introduced that will lead to the concept for a brand experience for Desperados. It contains extensive research with several analyses that give a more clear view on the target audience and the trends that are relevant for this particular group.

The individual analyses that have been done prior to this report are shortly reviewed and new analyses are added to lead up to the advice. A concept is presented at the end of this report, including visuals.

2. OUTCOME OF ANALYSES

In the process of writing the project proposal, each member of MAGNIFY has done an individual research to collect information about Desperados, the brand for which a brand experience will be created. For this individual analysis, each member chose a different marketing or communication model/theory. This chapter shows a concise overview of the various analyses and why they will or will not be used in this strategic advisory report.

Pine & Gilmore To take a look at the brand experience economy, Isa used the Pine & Gilmore model that is originated in 1999. It can be stated that Desperados is in the middle of a growth process and that the company needs to find the balance between the commercial market and the creation of a brand experience campaign. With the collaboration between events such as Amsterdam Open Air and Lowlands, and of course their own musical experiment Skyfest, Desperados showed that they are willing to test different ways of brand experience strategies to improve their brand. Because of the fact that this model has its focus only on brand experience, MAGNIFY decided to use the outcome for the desk research, but this model will not be discussed in any of the upcoming chapters.

The Facets Model of Effects In order to determine if Desperados uses effective advertisements, Isabelle used ‘The Facets Model of Effects’ by Moriarty et al (2009). This model determines the effectiveness of a company’s advertising by analyzing six primary consumer responses: attention, emotion, information, connection, persuasion and action. If Desperados makes sure that the brand experience includes at least one form of content that relates to each consumer response, the advertisement will be as immersive and effective for the target group as achievable. The fact that this model is originated to analyze advertisements is the reason why MAGNIFY has not chosen this model to use in the further research of this report.

The 7S Model Noor has conducted research to analyze the structure and efficiency of Desperados. For this analysis, the 7S Model (Mckinsey, 1981) was used. By investigating the 7S (Systems, Strategy, Structure, Shared values, Style, Skills, Staff) one will have a better view on the internal factors of a company. A recurring factor in this analysis is ‘diversity’: Desperados believes in a mixture between people and treats their employees in a progressive way, which creates employee-loyalty.

This model is useful for an internal analysis but doesn’t give the proper information that MAGNIFY needs for this assignment. That is why this analysis is used as background research.

The AIDA Model The AIDA Model is analysed by Nina to give insights on how a company can develop a successful advertisement. The four elements, Attention, Interest, Desire and Action, are linked to an advertisement and analyzed. The model was compared with the ‘Party better, party different’ campaign of Desperados and Jack Morton. This analysis shows that the collaboration between the brand experience agency and the company is a good fit with great outcome. It is of great importance that MAGNIFY takes the results of this analysis in consideration while composing a strategic advice. Further research has to be more thorough than just one campaign and in order to give a good advice it is necessary to choose a different model.

Abell Three Dimensional Business Definition Melle used the Abell Three Dimensional Business Definition model (D.F. Abell, 1980) to show with which products, on what kind of needs and in what market Desperados currently operates.

The researchers of Magnify consider this model, and especially the consumer needs, relevant for further research and this model will be discussed in chapter 3.

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SWOT Analysis Another model that has been chosen for further investigation is the SWOT Analysis (A.S. Humphrey, 1960). Babette has analyzed the internal and external factors that influence Desperados. By putting these factors together in a confrontation matrix you will have a clear overview. This model will also be discussed thoroughly in chapter 3.

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3. RESEARCH 3.1 Target audience

3.1.1 Three Dimensions of Abell Before MAGNIFY started writing this report, a quick research had been conducted on the current situation that Desperados is in. Including in this, Abell Three Dimensional Business Definition model was used. This model is used to reveal with which products, on what kind of needs and in what market a business is currently operating in. This paragraph will further expand on this research.

Customer groups Desperados wants to position themselves with 18-24- year old ‘young urbanites’ but seemingly also include secondary target groups, which could be due to the fact that they get activated by the same advertisements so this might not be on purpose. The secondary target groups are 25-35- year olds but also 18-24- year olds, which might pose a problem.

Desperados might in run into legal issues or have negative brand exposure if they get associated with underage drinking (Jernigan & O’Hara, 2004).

shows that Desperados, aside from their party-image, can also be an exclusive brand.

Others are just general drinks and get sold in some countries but not in all. This is due to different tastes in different cultures but also might be due to a country not having enough sales to make it break-even if they start selling different flavors.

Conclusion Desperados has a good variation of products (in the Netherlands) and most likely cannot sell new flavors until they have increased their brand knowledge or increased their sales in general.

Having taken a quick look at previous advertisement and marketing campaigns, it shows that Desperados is positioning themselves in the right market which they are looking for, which is 18-24- year old ‘young urbanites’. They still have the problem which is that there is a small age range included both upward and downward. Upward is not a problem since this just increases sales without an excess of extra promotion, but downward might pose a problem due to underaged drinking, which could lead to negative perception of the brand and legal issues.

In this research we have taken a look at customer needs, and Desperados is applying to these well but could improve on the digital connection with their customers. An idea for this is that they play more into the current (digital) trends and check what thrives their target group. This is something MAGNIFY is going to research further into.

Customer Needs Customers nowadays expect an active (online) relationship with a brand. Every single experience they have with a brand should be personalized, proactive and immediate. 7 out of 10 customers have stated that current technology has made it easy for them to choose another brand (Afshar, 2017).

People from ages ranging from 16 to 30 are starting to value experiences over physical products. Instead of recognizing a brand by logo or name, they recognize them by an experience they have received. 75% of millennials have stated it is important for them a company gives back to society and 42% are interested in helping a company through co-creation (Brewers Association, 2015).

The same study reveals that it is important that a customer can digitally connect with a brand and their friends at the same time. 62% says that if they get engaged by a brand on social media, they are more likely to become a (loyal) customer. It is evenly important that people can identify themselves with a brand.

Psychologically, people have the need to be able to associate themselves with a community, stereotype or group (Brewers Association, 2015).

Technologies As far as we could find, there currently are eight different variant of Desperados drinks.

Some of these are limited edition, which

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3.1.2 Target group analysis MAGNIFY wants to find out how the target group that Desperados is focusing on spends their time and what they find important and interesting in their lives. When this knowledge is retrieved, there is the best possibility to generate a good advice and concept for Desperados.

First needs to be defined who the target group is and if there already are assumptions which are helpful in this research. As has been noted by Desperados, the target group is 1824- year old ‘young urbanites’. During the Q&A with Andrew Thomas from Jack Morton, the term ‘urbanites’ has been defined as: ‘People that want to explore’ (Thomas, 2017).

MAGNIFY’s previous research has shown that the age range of 18 to 24 years includes both demographic cohorts ‘Generation Z’ and ‘Generation Y’ (better known as Millennials) (Wikipedia, n.d.). This is also due to the fact that there are no exact dates for when which generations starts but there are only years that are ‘typically’ used.

The only thing we can note for sure is that people that are part of Generation Y show an increased use of communications, media and digital technologies. People born from Generation Z grew up with having access to (new) advanced technology, internet and social media and cannot remember a life without it (Wikipedia, n.d.).

Another difference between Generation Y and Z is who influences and interests them.

Originally, Generation Y had posters of pop artists above their bed, had equal interests as people close around them and generally listened to the ‘status quo’ set by the government. Generation Z is about global orientation. They are more alike to their peers in other countries than to the older generations in their place of residence. They are also more influenced by so called ‘influencers’ who they found on digital (social) media. (Ubels, 2017) According to a research called Connected Life conducted in 2015, millennials spend 3,2 hours every day on their smartphone. 63% of them says to at least check their social media once every day and 69% uses instant messaging (WhatsApp, Facebook Messenger).

However, they also still use more traditional forms of consuming media but with a minor shift over to the digital replacement of this.

59% of the millennials watches online video’s every day. On average, almost two hours a day are spent

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3.2 Trends watching on-demand video’s and tv online by them (Van Adrichem & Ten Bokkel, 2015).

In 2016, Tech Insider says that teens are spending nearly all their waking hours looking at a screen. Almost nine hours a day are spending consuming media. In comparison, let’s say there are 15 waking hours in a day, then 9 of those 15 hours are spend on phones, computers or tablets. And most likely, the other 6 are spent in school or work.

Putting it in perspective, the average American spends close to five hours a day looking at their phone. Nearly everyone in Generation Z uses YouTube, and half says they can’t life without it. Other popular platforms are Instagram, Facebook and Snapchat, all totaling almost 70%. They also trust social media celebrities as much (and sometimes more than) the ‘mainstream’ celebrity. 79% of Generation Z says it is ‘OK’ if a celebrity talks about why they use or like a brand. They however prefer that if it is endorsed, but they want it to be disclosed if that’s the case (Bazilian, 2017).

According to an article written by Marketingfacts and Van Manen in 2017, 91% of Millennials watch TV, videos or films on the internet. Most of these are playbacks or livestreams of original TV content but there is also an increase in watching online-only ‘TV’ content. This is content that is technically an episode which would originally be aired on TV but now only airs ‘on the Internet’. Watching videos online on YouTube is a good way of spending time for Generation Y and Z. Generation Y spends 47 minutes on average a day watching YouTube and Generation Z spends 54 minutes.

As mentioned before, so called ‘social’ influencers are important if a brands wants to connect with an 18-24 year old audience.

Working in the same way as having celebrities in your TV show or advertisement, these influencers attract an audience but also make a brand more likeable since they psychologically make a brand more relatable.

These influencers find their best platform to be YouTube with its 1,5 billion users (Orendroff, 2017).

When developing a new brand experience for Desperados, it is important to keep the latest trends in mind. In the briefing from Jack Morton, it was said that an experience could mean multiple things and that a range of media and channels can be used for it (Desperados, n.d.).

Furthermore, it is important to keep the interests of the target audience in mind when it comes to creating this experience and choosing specific channels. This is why, in this paragraph, a research has been conducted on the most relevant trends in the context of this assignment.

Local advertising Because of the fact that nowadays the majority of people has a mobile phone with a wide range of different applications, the possibilities of tracking people down by their location is getting bigger and bigger. This gives brands lots of opportunities because they can become more aware of the places their target audience is visiting and where they spend their time. Brands can track their fans down by simply using Facebook on a specific location. They can use this knowledge for activities such as local advertising. By promoting the brand within a short distance of the location where a customer can buy or consume a brand, the company shortens the customer journey, which will increase the change of buying (Gosse, 2017).

able to see the whole journey of your online purchase. These things are the output of the internet, apps and mobile devices. The desire of being offline sometimes suits this trend, but people are becoming more and more enthusiastic about being surprised.

Think about a surprise menu in a restaurant or a giftbox with small ‘presents’, which are bought by the customers themselves, at the end of the month. The idea of treating yourself by buying something for yourself without knowing what you buy, but being sure that you will like it, gives people a satisfying feeling. Another example is srprs. me This organization arranges small travel trips, where the customer doesn’t know the destination of their trip until the day they leave (Gosse, 2017).

Social shopping Social shopping occurs when the company gives customers the opportunity to buy personalized products through advertisements on social media. By showing an advertisement on Instagram, Facebook or Pinterest, customers are able to buy a product immediately instead of searching on a website and using an online shopping basket. This makes it easier and more attractive for customers to buy certain products (Gosse, 2017).

Influencer marketing This trend is especially booming since 2016.

Instagram and YouTube are still increasing in growth, which makes it attractive for brands to use these platforms for advertisements.

There are several benefits of using an influencer for a brand’s online campaign (Stallvord, 2017):

Disappearing Content Disappearing content was extremely popular in in 2017. The ‘Stories’ function on Instagram became incredibly popular and Snapchat experienced an enormous comeback as it was globally the most downloaded app in 2016.

Disappearing content is often used for discount codes and sponsored geofilters.

These geofilters are a sponsored filter above someone’s actual picture, and are promoted by a specific brand that created a ‘funny’ animation (Gosse, 2017).

Being surprised Nowadays, many people are online, which makes it easy for them to be aware of a lot of information and to be in control of many things. People are able to prepare everything they want beforehand and are, for example,

- The influencer suits the target audience By using one or several influencers, it is easy to get in touch with a specific audience, as the influencers already have their own fanbase. As more and more people become influencers, a brand can choose which kind of influencer they would like to use as tool for their campaign. For example, if a brand wants to advertise for a supermarket, they could contact foodblogger and if a brand wants to sell clothing, they could try to work with a fashion blogger (Stallvord, 2017).

- It is ‘shareable’ As influencers are mostly online, it is easy to share their content. Most of the time, the content is produced in a relatively cheap way by simply photographing the influencer with the brand or inviting them to brand-related parties or events. The pictures and videos are the most important input that needs to be collected and shared. (Stallvord, 2017)

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3.3 SWOT - You have an ambassador By connecting a specific face to a brand, people will feel personally connected to a brand. By using an influencer to promote a brand, the brand automatically has an ambassador, to which the target audience can look up to. This can cause for the audience to think that, if the influencer is using the brand, the brand must be good which increases the chance of the audience using the brand as well (Stallvord, 2017).

Video Video is a trend which is also increasing.

YouTube is more popular than ever and Facebook developed its algorithm to push video content forward. Brands are aware of the fact that they have to invest in paid promotion of videos. This happened a lot in 2017. Because of the possibility of the rapidity of sharing, people are uploading more and more videos. Vloggers reach millions of followers and streaming on demand became a standard instead of watching programs on a regular television. There are also some trends when it comes to video content (Billywig, 2017): - Storytelling People like to watch short videos, but with context. They do not like to watch an advertisement, but want to see a short story. This makes it more attractive to watch because it gets more personal and emotional (Billywig, 2017).

- Live video content People like to feel involved. Audience involvement can be increased if people are able to stream ‘real-time’ content.

This trend is mostly popular on Instagram and Facebook, because most of the people do already have these applications (Billywig, 2017).

- Q&A content As mentioned in the last trend, people like to feel involved. This also counts for the personal lives of famous people or influencers. Video’s that contain personal information about idols or interesting people are doing well on the world wide web (Billywig, 2017).

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The information collected using the SWOT analysis gives a clear vision about the internal and external factors that influence the company. The following information is retrieved from the marketing plan from 2007 written by MKT G212 Consultants about the introduction of Desperados in Boston and the individual analyses of the researchers of MAGNIFY. 3.3.1 Strengths of Desperados Listed below are the strengths of Desperados: + With Heineken as mother company, it has a high product quality mark for new consumers. This creates loyalty among the consumers. + Uses creativity and innovation to reach the consumer. + Desperados has experience with creating innovative and unforgettable brand experiences for the target group. They did this together with Jack Morton but also brand agencies such as Wieden+Kennedy and We Are Pi. Below is a concise summary of successful campaigns: o Desperados ‘Train Trax’ (We Are Pi, 2017) o ‘Release your inner Tequila’ (We Are Pi, 2017) o Skyfest (Elrow, 2017) o Desperados ‘Be the partystarter’ (Natwerk, 2017) o ‘Party better, party different’ (Jack Morton, 2014) + The 7S model analysis shows that Desperados has a progressive way of treating their employees which creates employeeloyalty. The way a company treats their employees can be of importance for the dedication to the job and the willingness to work hard. (Nieuw organiseren, 2016). + Being a brand within the Heineken Company gives Desperados good market knowledge and research and development possibilities. + Desperados is popular on social media accounts such as YouTube, Facebook, Instagram and Twitter. The numbers are as follows: o YouTube subscribers: 15,898 (YouTube, 2017) o Facebook likes: 3,733,828 (Facebook, 2017) o Instagram followers: 48,500 (Instagram, 2017) o Twitter followers: 19,202 (Twitter, 2017)

3.3.2 Weaknesses of Desperados Listed below are the weaknesses of Desperados: - High transportation costs due to export policy, the Desperados breweries are in Croatia and The Netherlands. Export to other countries comes with high transportation costs.

- Inflexibility when sticking to the global marketing strategy of Heineken.

- Desperados has eight different types of drinks in its product portfolio: Desperados (regular), Verde, Mojito, Black, Red,, Dos, Sangre and Nocturno. Only the first three are available on the Dutch market because of the small market size. (Heineken Nederland, 2017) - As mentioned by Andrew Thomas, creative director of Jack Morton, Desperados camps with lack of social media commitment of the target group during campaigns.

3.3.3 Opportunities for Desperados Listed below are relevant opportunities for Desperados: - There is still an economic growth in The Netherlands and Europe.

- High brand loyalty rewards advertising efforts.

- The population of The Netherlands has 1.257.132 people between 18-24 years old.

This is about 7,5 % of the whole Dutch population (CBS, 2017).

- Upcoming trends such as video content, social media advertising and influencermarketing (Gosse, 2017).

- The social media channels of Desperados are still growing in likes, followers and subscribers.

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3.3.4 Threats for Desperados Listed below are relevant threats to Desperados: - Competition of Amigos, also a tequila flavoured beer brand. There is a great threat of substitute products on the beverage market. Not only Amigos is a competitor, but also other beers from Heineken, Bavaria etc.

- Strict political rules about alcohol consumption. In 2014 there has been a change in the Dutch minimum age of alcohol consumption. Before the 1st of January 2014 the minimum age was 16 years old, this changed to the age of 18 (Trimbos instituut, n.d.). The minimum age for drinking in, for example, Germany is 16, but there is no certainty if this will change in the future.

- High brand loyalty hampers market penetration.

- In every campaign there is a chance that the target group cannot be reached, that there is no emotional connection with the campaign message.

3.3.5 Confrontation Matrix Below the the confrontation matrix of the outcome of the SWOT Analysis is shown. All components of the analysis are put together in the matrix to give a better overview.

The competences of the organization are systematically set out to the developments of the branch. The assessment of the components has been done using the following effects: - Very favourable effect = ++ - Favourable effect = + - No effect or relationship to recognize = 0 - Inconvenient effect = - Very unfavourable effect = -- (Knoot, n.d.)

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3.3.6 Outcome of Confrontation Matrix In this chapter a concise statement of the current situation faced by the organization is given. By defining the Strengths and Weaknesses of the organization and Opportunities and Threats from outside of the organization you will have an internal and external analysis. In the confrontation matrix as shown in chapter 4.5 the following can be concluded: - Desperados is known for the particular taste and has a high brand loyalty for consumers because it is part of the Heineken company. This will have a favourable effect on the given opportunities.

- The brand uses creative and innovative marketing campaigns and creates brand experiences in collaboration with agencies such as Jack Morton, Wieden+Kennedy and We are Pi. The given fact that they use their creativity in a collaboration with brand agencies will have a good influence when Desperados decides to go after the opportunities.

- An example of factors that will have a negative (or no) effect on the opportunities is the weakness: ‘The inflexibility when following a global marketing strategy’ are the growing population of 18-24-years old.

- The economic growth is good for every company, when people have more to spend it will be easier for Desperados to sell their beer.

- It could be a threat for the company when the Dutch government decides to raise the minimum alcohol consumption age, because this will mean that the target group decreases.

The inflexibility when using the global marketing strategy of Heineken can have a very unfavourable effect on this change of legislation.

- There can also be concluded that the small product portfolio of Desperados in The Netherlands (as a weakness) prevents the organization from withholding the given threats.

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4. STRATEGIC ADVICE

It is of great importance that Desperados and Jack Morton create a campaign that connects with the target group and gives them an immersive experience. In order for MAGNIFY to give Jack Morton a proper strategic advice it was necessary to analyze the company, trends and other factors. The research outcome is combined with the communication and marketing expertise of the Magnify students and has led to the following concept as a strategic advice.

4.1 CONCEPT “DesperADIOS!” is a travel series that will be broadcasted on the YouTube channel of Desperados. In this series, social influencers from different countries (United Kingdom, Germany, Spain, France and The Netherlands), with different backgrounds will go on an adventure. They will try to travel to a Desperados pop-up party that is located in Budapest. However, the location will not be revealed to the public or the contestants until they have arrived and will thus be communicated as a ‘secret location’ during the campaign. Those who get to the party first, will win the battle. They will start their trip in the capital of their own country. Due to the fact that there will be influencers involved from different countries, the campaign will be presented via the YouTube channel of Desperados. The series consists of five different episodes: an introduction episode, a ‘Sweet’ episode, a ‘Bitter’ episode, a ‘Sour’ episode and a final closing episode. Sweet, Bitter and Sour refer to the different flavours of Desperados: the sweetness of tequila, the bitterness of beer and the sourness of the lime that is usually served with a Desperados drink.

Pre-exposure The most important goal of the preexposure is to gain the target audience’s attention and to make them understand the campaign. For DesperADIOS!, the attention of the target audience will be attracted by social promotion. Five weeks before the second episode will appear online, the introduction (episode 1) will be uploaded and shared (on social media) by the hired social influencer(s) per country.

The video will consist of a promotion for the big DesperADIOS! travel series, but will also contain information about the prize for the people who watch the series at home: tickets for the party where the influencers will go to on their road trip. They can win these tickets by uploading a photo on Instagram (with the Desperados logo visible in it) using the hashtags #DesperADIOS! and #PartyWhereverYouAre. By using these tools, Desperados will generate a lot of attention online.

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Direct exposure The direct exposure will consist out of videos which will be made beforehand. The videos will be uploaded during the direct exposure phase on the YouTube channel of Desperados and will show the adventures of social influencers from five different countries. The social influencers that will be involved in the campaign are familiar with vlogging. They all have their own YouTube

channel as well and will update their followers with new videos regarding this road trip. The influencers will try to get to the Desperados party in Budapest, which will be organized by Desperados. Without knowing where the road trip will bring them, the influencers have to try to reach this destination by accepting challenges (which are based on the characteristics of Desperados; sweet, bitter and sour) and getting hints to reach the final destination. The influencers who reach the party first, will win the battle. Every group that reaches the secret location on time, can enter the party and enjoy ‘beer + spirit of Tequila’.

The entire travel series will be a combination of ‘vlog’ of the contestants and videos that are filmed by a production team of Desperados.

These videos will be uploaded on their own YouTube channel and the Desperados channel. During the three Sweet, Sour and Bitter episodes, the followers of the European influencers, will find out who will win the battle. Of course, the videos will consist of a lot promotion, but they aren’t regular campaign videos, as they contain a concept of storytelling. The combination of the usual ‘vlogs’ of the influencers and the professional filmers makes this an unique and ‘easy to connect to-’ concept.

Home challenges for the loyal fans Fans of both Desperados and the influencers, will also get involved in this campaign through challenges they can do at home during the

pre- and direct exposure. By doing these challenges, they can win tickets for the pop up event of Desperados that the influencers are travelling to in the YouTube series.

At this event they can enjoy the music, atmosphere and a cold Desperados drink with their favorite influencers and the other winners of the home challenges.

Post exposure The post exposure will consist of an aftermovie which will be made after the pop up Desperados party has taken place.

The aftermovie will be shared on YouTube and social media and will be used as a pre exposure for other events. Because this concept is a one time experience, the post exposure does not need to last forever.

To keep this campaign alive until the summer, fans of the brand Desperados will be challenged to share pictures of themselves and their experiences with the hashtags #DesperADIOS! and #PartyWhereverYouAre. By doing this, they can win Desperados goodies, tickets for festivals or other events of Desperados.

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4.1.1 Planning

Below, the planning for DesperADIOS! is shown. It gives a more structured overview of the activities that will occur before, during and after the campaign.

4.1.3 Financial

Since DesperADIOS! consists of a multitude of online webisodes leading up to a pop-up party in Budapest, there of course is a large production cost for the concept.

This paragraph will start with the expected costs for the videos. A lot of different price ranges exist all depending on the level of professionalism of the video. Due to the fact that it must be professional and a shooting must be done with a (known) influencer on a remote location it can be assumed that the production costs for the video for DesperADIOS! is on the high(er) end.

According to Frederiksen (2017), the cost for a professional video for the web lies between €4.000, - and €40.000, -. As mentioned before, the fact that DesperADIOS! most likely will be located on the high end, we can safely assume that the video will cost at least €30.000, -. These expenses will include cameras, editing and renting locations. For the introduction video and the after movie there can be lower expenses, these are expected to be around €10.000, -. So for a total ‘season’ the total expenses for the videos would be around €110.000, - (Frederiksen, 2017).

For the event, MAGNIFY has estimated that it will cost between €10.000, - and €25.000, -. This is because the pop-up party must be big and interesting enough that people don’t want to miss and must find out where the party is located. And as expected, to make that happen, (bigger) artists, a good location, drinks and everything that makes a friendly gathering to a party are needed (Frederiksen, 2017).

A way to increase the (initial) exposure of DesperADIOS! could be to make use of ads before videos. Since you can set your own amount that has to be spend over a duration you can set as well, this can be tailored exactly to the amount of people that want to be reached. However, the expectation is that an amount of at least €10.000, - has to be spend to make it worthwhile.

YouTube advertising can also be used to earn back a minor portion of the expenses of DesperADIOS!, how small the numbers might be. YouTube pays a very small amount per 1000 views, but this is far from being enough to earn back the expenses made (Frederiksen, 2017).

Below, a small overview is shown about the estimated costs for the campaign of DesperADIOS!

4.1.2 Visuals To better visualize the concept, a logo and video have been created.

desperADI

S!

The video can be seen by clicking on the following link: https://youtu.be/PDfpDSuIFZM.

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5. CONCLUSION

To compose a fitting advice for Jack Morton and Desperados the students of MAGNIFY have done a lot of research to analyze different trends and influential factors. In this chapter the company will give a final recap of the highlights that have been discussed in this strategic marketing advice report.

As mentioned in the SWOT Analysis and confrontation matrix, but also in the target audience research one factor that is recurring is the fact that it is considered ‘tough’ to connect with the target audience. This connection can be on different levels, you can think of emotional connection also in the literal way of connection when you link a campaign to the social media channels of Desperados. The students of MAGNIFY combined their knowledge of communication and marketing to form an advice that can be seen as a solution of the lack of connection. By following trends of the moment and combine them with the consisting brand image of Desperados it would be a favourable strategic option to create a social influencer campaign. Because of the participation of social influencers, the campaign will have a loyal fan base from the beginning and when Jack Morton and Desperados decide to launch this campaign they are in advance with creating a connection between the brand and the audience.

The launch of the social influencers campaign DesperADIOS! creates more brand awareness for Desperados, which can be measured in the amount of views, followers and likes on the social media channels. The brand awareness will flow in to more sales.

Note of recommendation For maximum optimization of the strategic option there has to be done further research.

Research focusing on the choosing of the social influencer participants can be an example of further investigation. The choosing of the contestants has also an influence on the costs of the program. It is also considered agile to do more thorough research into the target audience, this can be achieved by doing both quantitative and qualitative research on the related groups (the influencers and fan base).

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Redactie Adformatie (2017). Desperados organiseert dancefestival met luchtballonen als podia. Retrieved on 5th of December 2017, from https://www.adformatie.nl/nieuws/desperados-organiseert-dancefestival-met-luchtballonnen-als-podia

Heineken (2017), Ons bedrijf. Retrieved on the 27th of November, from https://www.heinekennederland.nl/ ons-bedrijf i-SCOOP. (n.d.). Contentmarketing: wat is content en waarom is een definitie belangrijk? Retrieved on November 4th 2017, from https://nl.i-scoop.eu/content-marketing-wat-content-en-waarom-een-definitie-be-langrijk/ JACK MORTON WORLDWIDE. (2017, November 21). JACK MORTON_DESPERADO [Powerpoint presentation]. Retrieved from https://connect.fontys.nl/instituten/aci-vakken/1718/ce-2018-special-week-2/Leermateriaal/Jack%20Morton/JACK%20MORTON%20_%20DESPERADO.pptx?Web=1 JACK MORTON WORLDWIDE. (2017). About. Retrieved November 24, 2017, from http://www.jackmorton. com/about/

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Skyfest Desperados. (2017). Retrieved on November 23rd 2017, from https://www.desperados.com/nl-nl/ about-its/skyfest Sonhknd, (2014). Brand Communication through Advertising – 6 Facets Model. Retrieved on November 22nd 2017, from https://donguyenhason.wordpress.com/2014/02/04/brand-communication-through-ad-vertising-6-facets-model/ Stallvord, R. (2017). #Spon - De gouden regels voor influencer marketing. Retrieved on December 5th 2017, from https://www.managementboek.nl/boek/9789090305981/spon-de-gouden-regels-voor-influencer-marketing-rocco-stallvord#auteurs Tech Insider, & Willett, M. (2016). A study says teens are spending nearly all their waking hours staring at screens. Retrieved on December 6th 2017, from http://www.businessinsider.com/(null)/teens-average-%20 phone-screen-%20usage-2016-5?international=true&IR=T

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Thomas, A. (2017, December 5). Debrief Andrew Thomas. Retrieved on December 6th 2017, from https://connect.fontys.nl/instituten/aci-vakken/1718/ce- 2018-special- week-2/Leermateriaal/Jack%20Morton/Debrief%20Andrew%20Thomas.docx

ATTACHMENTS

Trimbos Instituut. (n.d.). Van 16 naar 18 jaar. Retrieved on December 6th 2017, from https://www.alcoholinfo.nl/publiek/opvoeding/van-16-naar-18

Below, the output of the brainstorms is showed in two pictures.

Output of brainstorms

Ubels, D. (2017). Generation Z: De ongrijpbare generatie. Retrieved on December 6th 2017, from https:// www.marketingfacts.nl/berichten/generation-z-de-ongrijpbare-generatie Van Adrichem, D & Ten Bokkel, J. (2015). Millennials besteden een dag per week aan hun smartphone.

Retrieved on December 6th 2017, from http://www.tns-nipo.com/nieuws/persberichten/millennials-besteden-een-dag-per-week-aan-hun-smar Van Manen, T & Marketingfacts. (2017). Onderzoek: het gebruik van internet en social media in Nederland. Retrieved on December 6th 2017, from https://www.marketingfacts.nl/berichten/onderzoek-het-gebruik-van-internet-en-social-media-in-nederland Van Orendroff, A. (2017). A visual journey through the evolution of the influencer. Retrieved on December 6th 2017, from http://mashable.com/2017/07/21/evolution-of-the-influencer/#YAYD5R7XFSq3 Van Waveren, C. (2015). DESPERADOS reveals new global creative strategy and integrated campaign [Press release]. Retrieved on November 23rd 2017, from http://www.theheinekencompany.com/media/Van Orendroff, A. (2017). A visual journey through the evolution of the influencer. Retrieved on December 6th 2017, from http://mashable.com/2017/07/21/evolution-of-the-influencer/#YAYD5R7XFSq3 Van Waveren, C. (2015). DESPERADOS reveals new global creative strategy and integrated campaign [Press release]. Retrieved on November 23rd 2017, from http://www.theheinekencompany.com/media Viccars, J. (2016). The power of brand experience. Retrieved on November 23rd 2017, from https://adverti-sing.theguardian.com/marketing-innovation/marketing-culture/the-power-of-brand-experience Wulandari, N. (2016). Brand Experience in Banking Industry: Direct and Indirect Relationships to Loyalty.

Retrieved on November 23rd 2017, from http://marketing.expertjournals.com/23446773-401/

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Handout

The picture below shows the handout that will be given or sent to the client before the presentation.

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